Return to UBS tops private banking poll
Atlas Capital
Founded in 2000, Spanish investment bank Atlas Capital set up its private-banking division in February 2003 and in October 2003, its front-office services began. The team had all previously worked together, though, for 10 years at Morgan Stanley and AB Asesores. Its formation sprang from two developments in Spain: a repeal of capital gains tax and the emergence of back-office platforms for clearing and outsourcing third-party funds and brokerage. In just one year this private-banking platform has made a significant impact in Spain. It currently has €278 million of assets under management with a wide base of 750 clients. It hopes to raise this to €590 million and 1,250 clients in 2005. But its most significant strategy lies in its client target range. “We focus on the main segment of the Spanish market – €300,000 to €1.5 million,” says Juan Ramon Caridad, head of business development and product strategy at Atlas Capital. “This is a largely forgotten part of Spain’s market.”
The group was nominated for best corporate advisory services and Caridad believes that Atlas Capital’s family offices services performed well in the Euromoney poll because it can leverage the synergies from the firm’s investment banking division and through its connection with Julius Baer. In January 2004, Julius Baer joined Atlas Capital as a minority shareholder, making the group the official representative of Julius Baer in Spain for institutional business.
“Our core philosophy is objective wealth management,” says Caridad.”This includes offering clients a wide range of open scenarios where investment decisions are taken under unbiased arguments. We are also able to offer customized structured products, private equity and tailor-made financial solutions,” he says.
The fund industry in Spain has been gathering pace, making competition fierce when it comes to pricing of services. To this end, the group also distinguishes itself from other private-banking services in Spain by not charging a management fee. It survives by taking a success fee from third-party providers. This strategy was risky but it is possible because the front-office team make up 70% of Atlas Capital so it doesn’t need to keep obsolete IT and back-office infrastructure.
“We are on the same side as our clients so we do not package the products but defend the idea of our success fees in our managed portfolios,” Caridad says.
Atlas Capital currently has three branches in Spain and plans to increase this to seven.
